The Art of Being Objective about a Stock

Do you have a set opinion about a market or a stock?

Does this sound familiar?

You enter a position and you’re already thinking about what the final outcome will be.

You’ve bought into the position convinced that the market is going to move in your favour. After all, it was the perfect set up! 

Yet, as traders we need to remember: there are no guarantees. 

If you believe that after taking a trade you know exactly what is going to happen next, then you’re not being objective.

To be objective you need a belief system that allows for anything to happen so you are never surprised.

Learning to be objective means you are not influenced by your feelings or opinions. You learn to be impartial, neutral and unemotional. This in turn keeps a lid on fear, stress and anxiety that often surface when a trade moves against you. 

We all have expectations when placing a trade, otherwise why would we place it in the first place? However, if we place a trade and demand a positive outcome, or get angry when our position isn’t performing, then we’re failing to be objective. 

In everyday life, you may find getting angry gets what you want. Yet in trading, this is never going to be the case. The markets don’t care if you’re angry. 

Objectivity is key to becoming a successful trader. 

What does being objective feel like and how can we get to this state to help improve performance? 

Here are 3 affirmations to help you stay centred and in the ‘objective zone’:

1) I’m totally disinterested in outcomes because I understand that after taking the trade the only thing I can control is my risk management.

2) I’m not focused on money because I simply follow a strategy and take notes on how the structures of the market are evolving and changing on a daily basis.

3) I release myself from the need to be right.

Instead of focusing on outcomes let’s focus on the processes.